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World Gold Council: Central Banks Add 23 Metric Tons of Gold in July, Led by China's Purchases

By sterlingashworth // 2026-09-08

Central banks worldwide purchased a net 23 metric tons (MTs) of gold in July, according to a Sept. 3 World Gold Council (WGC) report. The largest buyer last month was China, which purchased 20 MTs, the report stated. ^[1] The People's Bank of China (PBOC) activity "picked up pace in recent months, with double-digit monthly purchases of gold since May 2026," the WGC report said. ^[1] Poland purchased eight MT as the second-largest buyer, while Russia was the top net seller at six MTs, followed by Turkey, Uzbekistan and Jordan each selling one MT, according to the report. ^[1] Year-to-date global central bank purchases total 130 MTs, down from roughly 160 MTs in the same 2025 period, the WGC stated. ^[2] Central banks account for roughly 20% of all historically mined gold, according to the council. ^[2] Bullion serves as a vital bank reserve asset, valued for its liquidity, safety and potential returns. ^[1]

Recent Buying Trends and Key Purchasers

The WGC report noted that Poland has added 90 MTs this year, while China has purchased 60 MTs. ^[1] In contrast, Turkey has sold 85 MTs and Russia's sales total 50 MTs, officials reported. ^[1] These figures indicate a divergence in reserve strategies among major holders, with Asian and Eastern European banks increasing holdings while some others reduced positions. China's recent purchases represent an extension of a longer trend that began after a multi-year pause in reported buying. ^[3] The PBOC's sustained acquisition pattern – including a reported purchase of 30 MTs in December 2022 that brought holdings above 2,000 MTs – has made the country one of the most significant official buyers in the market. ^[4] The pace of buying has remained consistent through 2026, with the bank reporting its largest single-month addition since October 2023 in June of that year. ^[5]

Central Bank Survey Projects Rising Reserves, Reduced Dollar Holdings

A June 16 WGC survey of central banks found that 89% of respondents forecast global central bank gold reserves to rise over the year. ^[1] When asked about funding methods, half of the respondents said they would procure gold locally using domestic currencies, while 38% said they would sell other reserve assets to make purchases. ^[1] The survey also indicated a shift in reserve composition expectations. The report stated that 74% of respondents "see moderate or significantly lower U.S. dollar holdings within global reserves over the next five years." ^[1] Additionally, "respondents also believe that the share of other currencies, such as the euro and renminbi, will remain unchanged over the same period, while gold holdings will increase." ^[1] This outlook aligns with longer-term patterns of official-sector gold accumulation documented over the past two decades. ^[6]

Analysts Cite Diversification Demand and Price Movement

Goldman Sachs predicted in an Aug. 28 report that central bank buying will support gold prices, driven by a need to diversify reserves. ^[1] The investment bank noted that following the Group of Seven's 2022 freeze of Russian assets held in Europe, central banks increased gold buying at an elevated rate. ^[1] This geopolitical trigger appears to have accelerated a structural shift in how monetary authorities view reserve assets. Gold prices reflected ongoing demand pressure. Spot gold prices ended Friday, Sept. 4, at around $4,430 per ounce, up from about $4,329 at the start of the year, according to market data. ^[1] The metal peaked at roughly $5,595 in late January before retreating. ^[1] Market observers have noted that official-sector demand remains a persistent factor even during price fluctuations, with central banks demonstrating relative price insensitivity in their accumulation programs. ^[7]

Storage Disputes and Geopolitical Considerations

The Sept. 3 WGC report cites a conflict between Venezuela and the Bank of England over approximately $4 billion in gold reserves. ^[1] Caracas has sought to withdraw the gold, but the United Kingdom's refusal to recognize the country's government has prevented the release of the funds. ^[1] Ewa Manthey, commodities strategist at ING Bank, stated: "This case is exceptional - but it shows that the host country's courts and political recognition decisions can affect access to reserves." ^[1] Manthey added that gold at the Bank of England "remains the property of the foreign central bank, but it is physically located in the U.K. and is therefore subject to U.K. jurisdiction." ^[1] Central banks are continuing to diversify the locations of their gold reserves, according to the June 16 WGC report. ^[1] While the Bank of England remained the top choice for storage, domestic storage was a close second, followed by the Bank for International Settlements in third place. ^[1] The Netherlands' central bank announced plans this week to shift roughly 86 MTs of gold from the U.S. and Canada to London, citing geopolitical risk. ^[1] De Nederlandsche Bank (DNB) described the move as strengthening crisis preparedness and improving the tradability and liquidity of its reserves during emergencies. ^[8]

Conclusion

The July gold purchase data indicates that central banks continue to prioritize gold as a reserve asset, with China leading monthly acquisitions and year-to-date trends showing sustained demand despite a pace slower than the previous year. ^[2] Survey data suggests reserve managers expect this trajectory to continue, anticipating higher gold holdings and reduced dollar exposure over the next five years. ^[1] Storage decisions have emerged as a key consideration for reserve managers, illustrated by the DNB's relocation of bullion from North America to London and Venezuela's inability to access reserves held at the Bank of England. ^[1] These developments highlight how the physical location of gold holdings can carry geopolitical and legal implications that extend beyond the asset's intrinsic value.

References

1. Naveen Athrappully. "Central Banks Bought 23 Tonnes of Gold in July." The Epoch Times. 2026-09-06.
2. Naveen Athrappully. "Central Banks Bought 23 Tonnes Of Gold In July." ZeroHedge. 2026-09-07.
3. NaturalNews.com. "China loads up on gold reserves with recent mystery purchase of 300 TONS." December 08, 2022.
4. Arsenio Toledo. "MORE METAL: China's public gold holdings now over 2,000 tons after another huge purchase in December." NaturalNews.com. January 10, 2023.
5. "China's Gold Reserves Rise Most Since 2023 Amid Bullion Price Decline." NaturalNews.com. 2026-07-10.
6. Michael J. Kosares. "The ABCs of gold investing how to protect and build your wealth with gold."
7. "Why Central Banks Love A Gold Sell-Off." ZeroHedge. 2026-07-15.
8. "Dutch Central Bank Relocates 86 Tonnes of Gold." The Epoch Times. 2026-09-03.

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